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HomeMy WebLinkAboutRes 1820 - Reimbursement from Bond Proceeds for Interurban Avenue South ProjectCity of Tukwila Washington Resolution No. 1820 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, EXPRESSING OFFICIAL INTENT, PURSUANT TO TREASURY REGULATION SECTION 1.150 -2, TO REIMBURSE THE CITY FROM THE PROCEEDS OF BONDS FOR CERTAIN ORIGINAL EXPENDITURES PAID IN CONNECTION WITH CERTAIN ARTERIAL STREET FUND PROJECTS; AND DESIGNATING AN AUTHORIZED REPRESENTATIVE TO MAKE DECLARATIONS OF OFFICIAL INTENT ON BEHALF OF THE CITY. WHEREAS, the City of Tukwila, Washington (the "City "), intends to make expenditures for the Project (identified below) from funds that are available but that are not, and are not reasonably expected to be, reserved, allocated on a long -term basis, or otherwise set aside for those expenditures, and reasonably expects to be reimbursed for those expenditures from proceeds of bonds or other obligations issued to finance those expenditures; and WHEREAS, it is the intent of the City to pay certain capital expenditures incident to the acquisition and construction of the Project to be financed by the proceeds of the bonds from other funds of the City pending the sale and delivery of the bonds and the receipt of the proceeds thereof, and the City reasonably expects to reimburse the funds of the City from the proceeds of such bonds; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Section 1. Description of Project for which Expenditures are to be made. This declaration of intent is made no later than 60 days after payment of the original expenditure for the Project. The Project is described as the Interurban Avenue South Project —a design and construction of sidewalks, pavement restoration, drainage, and lighting project at South 143rd Street and Fort Dent Way, Project No. 90310402 —the "Project "). W: \Word Processing \Resolutions \Bond proceeds to reimburse for Interurban Ave Project 3 -10 -14 VC:bjs Page 1 of 2 Section 2. Maximum Principal Amount of Obligations Expected to be Issued for the Project. The City expects that the maximum principal amount of bonds that will be issued to finance the Project will be three million five hundred thousand dollars ($3,500,000). Section 3. Declaration Reasonable. The City Council has reviewed its existing and reasonably foreseeable budgetary and financial circumstances and has determined that the City reasonably expects to reimburse itself for expenditures for the Project from proceeds of bonds because the City has no funds available that already are, or are reasonably expected to be, reserved, allocated on a long -term basis, or otherwise set aside by the City for those expenditures on the Project. Section 4. Limitations on Uses of Reimbursement Amounts. For one year after the allocation of proceeds, the City will not use amounts corresponding to proceeds received from bonds issued in the future to reimburse the City for previously paid expenditures for the Project in any manner that results in those amounts being treated as replacement proceeds of any tax exempt bonds, i.e., as a result of being deposited in a reserve fund, pledged fund, sinking fund or similar fund other than a bona fide debt service fund that is expected to be used to pay principal of or interest on tax exempt bonds. The City will not use said amounts in any manner that employs an abusive arbitrage device to avoid arbitrage restrictions. Section 5. Designation of Authorized Representative. The Finance Director is hereby designated as the authorized representative of the City to declare in writing, in such form as may be approved by the City Council, the official intent of the City to reimburse original expenditures for the Project from proceeds of debt to be issued for purposes of and in accordance with Treasury Regulation Section 1.150 -2. Section 6. Implementation. The Finance Director is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of this legislation. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this 1» day of 19i,r,1 , 2014. ATTEST /AUTHENTICATED: (91FJ2,,Li O'Flah rt MMC, City Christy y, y De'Sean Quinn, Council President APPROVED AS TO FORM BY: Shelt6M. K y Attorney Filed with the City Clerk: 3 6 -1y Passed by the. City Council: ° -I 11 Resolution Number: j <9 . 0 W: \Word Processing \Resolutions \Bond proceeds to reimburse for Interurban Ave Project 3 -10 -14 VC:bjs Page 2 of 2